The bill proposes the establishment of a new chapter, CHAPTER 3.4, titled "Electronic Registration and Titling Act," within Title 31 of the General Laws concerning motor vehicles. This chapter outlines the implementation of an electronic lien and title (ELT) system and an electronic registration and title (ERT) system, which will allow business entities, credit unions, and financial institutions to conduct transactions electronically for automotive titles and registrations.

The bill specifies that starting October 1, 2026, credit unions and financial institutions recording five or more security interests annually must utilize the ELT system, while licensed motor vehicle dealers selling over 150 vehicles per year will be required to use the ERT system once it is certified for use.

Additionally, the bill allows for the implementation of a secure digital vehicle title system, which will provide title holders with a fully paperless, secure digital certificate of title that is recognized as an official title and fully transactable within Rhode Island and other jurisdictions.

The bill also includes provisions for electronic forms related to odometer disclosures during vehicle transfers, allowing for electronic signatures and documentation of mileage. Furthermore, it allows the division of motor vehicles to charge a per-transaction fee for the use of the ELT and ERT systems, and mandates that the administrator of the division promulgate necessary rules and regulations for the implementation of these systems.

The act is set to take effect on July 1, 2026.

Statutes affected:
7452: 31-23.2-6
7452  SUB A: 31-23.2-6